Deckers Outdoor Surges 14.66% on Impressive Q1 Earnings

Deckers Outdoor Corporation's (DECK) shares surged 14.66% to $116.85 last Friday after reporting a 20.2% increase in net income to $139 million in Q1 FY26. Net sales also jumped 16.8% to $964 million. The company targets $1.38-$1.42 billion in net sales and $1.50-$1.55 diluted EPS for Q2 FY26.

Deckers Outdoor Corporation (DECK) reported robust financial results for the first quarter of fiscal year 2026 (Q1 FY26), leading to a significant rise in its stock price. The company's shares surged 14.66% to $116.85 last Friday, following the release of its earnings report. Net income increased by 20.2% to $139 million, while net sales jumped 16.8% to $964 million.

The company's president and chief executive officer, Stefano Caroti, highlighted the strong performance of the HOKA and UGG brands, which contributed to a 50% increase in international revenue. The HOKA brand saw a 19.8% rise in net sales, reaching $653.1 million, while the UGG brand's net sales climbed 18.9% to $265.1 million. The company's wholesale net sales enjoyed a substantial boost of 26.7%, amounting to $652.4 million, and direct-to-customer (DTC) net sales saw a marginal increase of 0.5% to $312.2 million.

Deckers Brands' overall performance in Q1 FY26 was also reflected in its gross profit, which rose to $537.91 million from $470.00 million year-over-year, with a gross margin of 55.8%, slightly down from 56.9%. Selling, general, and administrative (SG&A) expenses increased to $372.62 million in Q1 FY26 from $337.19 million in the prior year quarter. The company's operating income also increased to $165.29 million during the quarter, up from $132.81 million in the same period last year, while net income grew to $139.20 million from $115.63 million.

Looking ahead, Deckers Outdoor has provided a limited outlook for the second quarter of fiscal 2026 (Q2 FY26), due to ongoing fluctuations in global trade policies and associated macroeconomic challenges. The company anticipates net sales to be between $1.38 billion and $1.42 billion, with diluted EPS in the range of $1.50 to $1.55, excluding any further share repurchases' impacts.

The company's stock repurchase plan, approved earlier this year, further indicates confidence in its valuation. The plan allows for the reacquisition of up to 11.7% of its shares, totaling $2.25 billion.

References:
[1] https://finance.yahoo.com/news/deckers-sees-16-9-q1-120415973.html
[2] https://www.marketbeat.com/instant-alerts/deckers-outdoor-q2-eps-estimate-increased-by-seaport-res-ptn-2025-07-28/